West Bengal accounts for almost one third of the country's potato production and the total storage capacity of the state's cold storages is around 34 lakh tonnes. In a normal year the unloading starts only in the middle of June.pThe president of the West Bengal Cold Storage Association, SM Jain, told The Financial Express "The traders who hold 20 per cent of the stocks in the cold storages are the ones who are unloading there stocks. Apart from selling in the local markets some stuff is also going to other states."

In West Bengal's cold storages 75 per cent of the space is alloted to the farmers for storing of stock. The traders have 20 per cent and five per cent of teh stock is held by the district authorities.

Jain said "The farmers are not unloading their stocks. In fact every year the traders start offthe unloading and the farmers unload much later."

The potato retained with the farmers, which is slowly released to the local markets is reportedly almost exhausted by this time. The retail prices are hovering around Rs 5-7 per kg.

The 1999 summer season of potato was a much better crop following the disaster of 1998 where most of the crop was destroyed by the unseasonal rains in Februaury 1998. This year's potato crop was estimated at 61 lakh tonnes.

The cold storages in the state have been filled up to 90 per cent on an average. In Bankura district 100 per cent of the space has been taken over. In Bardhaman district between 95 and 100 per cent of space was taken over.

In Midnapur district 90-95 per cent of space was filled up and in Hooghly 85-95 per cent of the space was taken. Jain said "Our margins will be slightly under pressure in the two districts of Bankura and Hooghly. We would have been confortable had the bookings been up to the levels of Bankura and Bardhaman in these districtstoo."

However, the cold storages of north Bengal were fully occupied this year, although production and cold storage capacity is very less in that area.Cold storages in west Bengal follow a system whereby a transferable bond is issued by the storage against the potato stored with it. A small portion of the rent is paid in advance. Unloading is done against payment of the rent.

Meanwhile, trading is allowed with the bond and often while most of the crop is loaded by farmers by the time of unloading the traders take control of the stocks. Often many of the influential farmers also engage in trading.